Transcripts For KQEH Charlie Rose 20170904

I think before we really see those Science Fiction, well begin to see more mass awion of movie thing or entertainment thing. Rose technology and entrepreneurship for the hour, next. Rose funding for charlie rose has been provided by the following and by bloomberg, a provider of multimedia news and Information Services worldwide. Captioning sponsored by Rose Communications from our studios in new york city, this is charlie rose. Rose jeff bezos founded amazon in 994 out of his barrage as a online book seller. It is as monk the worlds most valuable company, the most richest person second only to bill gates. Amazons ambition is to sell everybody to everybody. Amazon reached fans well beyond its roots. The web services is leading company in the cloud. In january, amazon became the First Digital streaming service who won a golden globe for best tv series. Jeff bezos had many passions. He founded the Aerospace Company blue origin to lower the cost of space travel and increase the safety. In 2013 he purchased the Washington Post. I met with him earlier today at the Economic Club here in new york. Here is that conversation. What is it that amazon wants to be . Well, a couple answers to tt is. The single way to answer that question the thing that connects everything amazon does the number one conviction and idea and philosophy and principle which is Customer Obsession as opposed to competitor obsession. And so were always focused on the customer working backwards from the customers needs, developing new skills internally so that we can satisfy wh w perceive to be future customer needs. We have a whole working backwards process that starts with the customer needs and works backwards. So that is really, if you look at, it seems like were in a bunch of different bezos so we have amazon register, which is completely different from our amazon prime business or Amazon Marketplace or Amazon Studios and so on. But really, the way that those businesses are run is very very similar. And it all starts with its just not Customer Obsession, thats the number one one but we have a very invincive culture so we like to pioneer events. There are other business strategies. Pioneering is not the only effective Business Strategy and in fact some people would argue its not the most effective one. Close following can be a very good Business Strategy and worked many times if you look at the history. It just isnt who we are. Willingness to think long term. I think thats another Common Thread that runs through every single thing we do. We are very happy to invest in new initiatives that are very risky for five to seven years which in most Companies Wont do that. Companies will invest for very long periods of time and they should in those cases where the outcomes are more certain. Its the combination of the risk taking and the long term outlook that makes amazon not unique but special in a smaller crowd. Then finally, taking real pride in operational excellence. So just doing things well. Finding defects and working backwards. Thats all the incremental improvements that most Successful Companies are good at this one. If youre not good at finding the root cause of the defects, fixing that root cause, every one of those defects flows down stream. Thats a key part of doing a good job in any business in my opinion. Rose you have said three pillows, the mush place, amazon prime and Amazon Web Services. Thats right. Rose lets go in reverse order. Amazon web services is the largest business in revenue. Not revenue, its a big contributor to process. Our Retail Business by the way is in our established countries. Its also very profitable. We keep investing in video, original content with Amazon Studios and so o but Amazon Web Services is, it follows all those principles i laid out at the beginning. One of the unusual thing that happened with Amazon Web Services is the amount of runway we got as a gift before we faced likeminded competition. We had, it appears to me just empirically that its a new way of doing something. Typically if youre lucky, you get about two years of runway before competitors copy your idea. Two years is actually a pretty long time in the industry so thats a big head start. For whatever reason and i have a hypotheses is what the reason is. For whatever reason, Amazon Web Services got seven years of runway before we faced likeminded competition. There were other people doing similar kinds of things but not the same way and not with the same approach and the same mind set. In my experience thats unheard of to get so much runway. I think the reason that happened is because the incumbents in for enterprises, technology for enter prices thought what we were doing was so damn weird that it could never work. So we just kept very quiet about it and we knew it was working and we would read news stories that would say things like do you really think anybodys going to buy Mission Critical enterprise infrastructure from an online book seller and we would look at that and certain people were opining on that and we would read those articles and we would look at our business statement. We got very lucky. That was a gift. What that allowed us to do was build a gigantic advantage in terms of the feature set and the Service Offering and the cost structure and Everything Else that you just cant wave a magic wand and do that quickly. It takes years and years. Now were not stopping so that team is, you know, every year, 500, 600, 700, 800 new features and services. They keep pushing on that. That team is just doing an amazing job. Rose the other thing, amazon prime, the second pillar, amazon prime, 65 million members of amazon prime. I dont reveal that. Rose why is that, why is it so crucial for your future prime. Well, prime is, what we want prime to be, what weve developed it into over time is its the best of amazon. So you can get, basically if you join prime, we want to have our core service be outstanding and anybody who wants to use amazon and not be a prime member should have a great experience. And people who are not prime members for example can still get Free Shipping. It has to buy a certain number of products or you have to get above a certain shipping or certain products kind of ordered basket i think its 49. If you get above that 49 hurdle, then they can get Free Shipping. And so what we did with prime is say, look, you know, you can get Free Shipping without joining prme but if you want fast Free Shipping, our best service, then you need to join prime. Rose its 99 a year. 99 a year. We started adding other benefits to it that we know people like. So we added prime video which has been a very successful new benefit for prime. Years ago we added this ten or 10,000 shows and they were all licensed and they were all reruns. Things like gilligans island. Youre a prime member. Heres the went fit. We know its not the most important tv show in the world but it also isnt costing you anything extra. So it grew. And now were doing, you know, Emmy Award Winning and golden globe winning content. You get access to at no Additional Charge just being a prime member. Rose getting into the creative part of the entertainment business what was the motivation behind that. There are two different ways to think about that. We always start with the customer centric point of view. If were going to make original content which amazon feels its do how can it be better or different from so much content thats on the there that you could license already and not have to make yourself. And the fact of the matter is that the over the top stream of services with a subscription model can have, can in fact make different kinds of conten. So a show like transparent which is Golden Globes and emmys, its not a show that could be successfully done on broadcast tv because broadcast tv, its much bigger audience for that. Transparent we want to make shows that are somebodys favorite show. On broadcast tv, you can be very happy if you have a big show that is, you know, 20 million peoples third favorite show. And you can actually think about the Creative Process a little differently. You can attract different story tellers. You can go for stories that are narrower but incredibly powerful and well told. Mozart in the jungle, and these other, i dont see how it could be successful on broadcast tv either. You can ge, we attract a different kind of storyteller telling a different kind of story. Also there are tail winds in this business that are happening because of hbo and netflix and others that ten years ago you couldnt get an a list talent to do tv. They perceived it as stigmatizing. Today its completely different. Today they want to do serialized tv because the quality of storytelling is so high its completely flipped on its end. Rose ive listed three pillars. What might be the fourth pillar. We dont know yet is the real answer. I think its very hard to identify. We do a lot of Different Things and the fourth will rise and extinguish itself. Im optimistic about things like Amazon Studios, the original contact could become a fourth pillar. I think what were doing with natural language understanding and echo and alexa. Rose everybody talks about Artificial Intelligence, everybody. Yes and rightly so. Rose what does it add this is the real thing. Rose enlarge on that and also on the idea what echo is and how it may very well be the beginning and the edge, the wedge into Artificial Intelligence that benefits everybody. Echo is a small black cylinder. It has seven microphones on the top and it has a speaker inside and a digital processor and some other computes inside and its wifi connected to the cloud. And alexa, the agent, the artificial agent that lives in the cloud talks to you through alexa, i mean through echo. One of the interesting things about echo the device is it uses those seven microphones to do something called bean forming. So basically it can hear you very well even in a very loud kitchen environment, for example. The dishwasher running and you have the sink and somebody is make the television in another room but awe little awe can still hear you because of that digital processing. You can say alexa what time is it, what is the weather today, alexa. In natural language. Alexa, play a certain song, etcetera etcetera. And people, this has been a big hit, we launched it a few years ago. It has exceeded our expectation in terms of volume. We have literally thousands of people working on it. Rose and google wants to be in that business and everybody else wants to be in that business. Everybody wants to be in that business. So here weve got the kind of standard, you know, two, two andahalf year head start. Rose let me talk about the Washington Post. Yes. Rose you bought the Washington Post without any Due Diligence. You were so impress ode i didnt do Due Diligence because i knew don graham for 1 5 years. If any of you know don graham hes possibly the most honest person in the world. He laid out all the warts for me and all of the gray things great things for it and i dont think it could have gotten more clarity than talking to don for several hours. Rose why did you buy it. I 3w5u9 it because its important. I would never buy an upside down salty food snack company. That doesnt make any sense to me but the Washington Post is important so it makes sense to me to take Something Like that. Al, so im optimistic and i thought there were some ways to make it, i want it to be a self sustaining profitable enterprise. That would be healthy for the most and i think it could be done. Our approach is actually very very simple. Its hard to execute on and its going to take time but approach is simple. We need to go from making relatively large amount of money per reader on a relatively small number of readers. Thats the historic model of the post. Two the model will make a relatively small amount of money per reader on a very large number of readers. Thats the new model. Rose thats your Business Model to isnt it. Thats a better Business Model for the entertain era and the post is unusual and this is one of the things from a business point of view why im so optimistic about the post, its been a local paper, a very good local paper but it happens to be a local paper situated in the capital city of the United States of america. And so it has, its kind of geographic location is superb for converting it from a local paper to a National Even global pup case. Thats the gift the internet brings. To do national and global publication in the days of print, super expensive. You have to figure out to have Printing Presses and physical distribution which are very challenging, today that piece is easy. To get Global Distribution in digital form rose because its an important newspaper the nations capitol the most powerful country in the world, did you want it also because it would give you political influence. No. And i think one of the reasons that don graham liked me as an owner is because he didnt think i would politicize it. And so you know i think because its in the capitol city of the United States of america, it should not be, you know, you take the british model of newspapers, you know or kind of left wing paper or right wing paper. And there are certain people who if they had bought the Washington Post would have converted it in one of those directions. I dont the that would be healthy for the post or healthy for the country. And plus im also, in that respect im also a good owner because im so damn busy. Rose you and i sat last night with a former at not. This was fun, scott kelly. Rose scott kelly who was there at the International Space station for i dont know how many days. What is it that you hope to accomplish in space. Well, this is first of all lets back up. This is a childhood dream. I fell in love with the idea of space and Space Exploration and space travel when i was five years old when i watched Neil Armstrong step on to the moon. You dont choose your passions, your passions chose you. So im infected with this idea. I couldnt ever stop thinking about space. Thinking about it ever since then. And so again, you know, i did not, when i started blue origin which is the name of this space company, i did not make a list of all the businesses in the world where i thought i might get the highest return on investment capital. And it was driven by passion and curiosity and the need to explore the things that i care about. And so we have over time still a Brilliant Team now over 800 people at blue origin. We have several little tourism vehicle called blue shepherd that like a regular rocket that launches and lands on its tail like a buck rogers rocket. We used the same vehicle five times. Rose thats key to the business of going into space. Thats the absolute key. If you look at, if you ask the question why is space travel so expensive, there is one reason and its because we throw the hardware away ever time after using it, all expendable. Even in the past when weve done things through a sort of semi usable, there wasnt an opoperae reusability because they were disassembled and put back together. You imagine air travel after your hawaii vacation you get to hawaii and well they throw the 747 away its going to be really expensive its going to be super expensive when you get to hawaii they disassemble the whole thing, inspect every part and do it all together before youre allowed to fly again. That was the problem with the space shuttle. And so its really important that you design the vehicle from the beginning for highly operable use usability. People dont know this about rockets but a big rocket, lets say has a million mounds of propellent on board, two thirds of that may be liquid oxygen weighing 6,000 pounds over so of liquid oxygen. Do you know how much that costs, 60 a pound. Thats 60,000 worth. Youre still talking about a few hundred thousand dollars of propellent cost. In the launch costs on the order of 60, 70, 150. So how do you get from a hundred Million Dollars to 300,000 of propellent. Its simple, youre throwing the hardware away. So the engineering challenge involved in building the highly operable reusable vehicle is gigantic but if you can do that, its a game changer. You change everything. Now why, to your original question, i believe its incredibly important that we humans go out into space and the primary reason we need to preserve the earth. Im not one of the plan b guys. Theres kind of a conventional wisdom thats quite common that one of the reasons we need to go into space and settle another planet as a kind of back up for humanity. If earth gets destroyed at least we have this other place. And i dont like that approach, thats not motivating for me. But what, ill tell you what we know for sure. We have now sent robotic probes to every planet in this solar system. We have taken close looks at the mall and believe me, this is the best planet. It is not even close. So what you need to do, and if you look at, if you want a thriving growing civilization, you want population growth to continue, you want a whole bunch of things to continue. And i believe that in the next few hundred years what will happen is well move all heavy industry into space for a whole bunch of practical reasons, easier access to resources of all kinds, Material Resources as well as energy. You think about scholar e nergy solar energy on earth its problematic because its available half the time. In Space Solar Energy is available 24 7. But the list of practical reasons why rose but you also have to build an infrastructure up there. Yes. Thats why you need really low cost. You need to shrink the cost of lifting maps into space by earth. You reduce that cost by a hundred times. And then you can do these things. An then blue origin is not going to do this all by ourselves. What i want to do with blue origin is build heavy lifting infrastructure that lowers the cost of access to space so its the next generation of entrepreneurs can have a dynamic entrepreneurial explosion in space. Thats how well move all heavy industry in space and then ultimately earth can be you know effectively zoned residential and light industrial. Rose you and bill gates got together and started something called gray the science of that is unbelievable and you can sequence, tumors shed limits bits of dna into your blood stream and you can use sequencing technology to amplify those things and then detect cancers at very very early stages. For a lot of cancers, Early Detection is a big deal. This is, the science is this. Its very promising, very real and it might not work. Rose the market but it might and im optimistic. Rose thank you jeff bezos. Thank you, charlie. Rose Susan Wojcicki is here. Shes the ceo of youtube the video platform 24569 has over a billion users in more than 88 countries. Her system of google dates back to 1998 when she became employee number 16. Since then shes made pivotal contributions to the company especially in advertising. Magazine has called her a cons mother google insider observing not many people and very few williams are chosen to be a member of larry pages inner circle. Im please to do have her here at my table. Welcome. You should have been here earlier and ill take the blame. Thank you so much for having me. Rose tell me. When they moved to alphabet, some of us thought that youtube might be under the google umbrella. Yes. So i think the idea was to be able to give a scalable google and alphabet now has expanded into so many new areas from fiber to medical to cars and youtube might become an independent company because of the brand we have. We have over a billion users, the reach we have. But yet youtube is a really integral part of google. Our mission about enabling everyone to have a voice and to be able to is similar to google and were grated in so many ways so in the end we decided to keep youtube a part of google. Rose it was acquired in 2006, somewhere around that. Yes. Rose when did you realize this could be big or did you know that when you bought it and thats the reason google bought it. Well you know there were i think early on we realized it could be really big. And that was because, you know, there were a few insights. So the first big insight was that people all over the world want to up load video and have that be shared. And so when we first started, we just had a basic link and we said up load video. And incredibly people d we didnt tell them what we were going to do with the video but still people all over the world uploaded video. That was the first insight. Wow people want to share their video with the world. But then the second insight which was even more surprising is that other people wanted to watch regular people video like themselves. And so i remember we had our first hit and our first hit was really the two students in their dorm room singing to the back street boys and they were so funny. They were so creative about it. And the numbers that we had were just, we just thought this is a hit, people want to watch all kinds of content. Rose you have said youtube has grown up. What did you mean . Well youtube started out really with people just up loading rose cats and more people. Yes, cats and interesting things they saw along the way. What happened is people started to realize wow im getting a lot of users and a lot of viewers. A number of people became youtubeers. They became professional Youth University youtube creatd they can make money up loading videos. These are people who have a global brand. A lot of times they have millions of subscribers. Theyre making a good living on youtube. And they are extremely wellknown. They are extremely famous among their demographic end users. And so now we have youtube is a collection of a huge amount of video content. Professional youtubeers. And of course tv also users youtube as a way of putting their content on it and promoting it and having it be part of of a site why there are a billion people coming every month to watch videos. Rose i didnt say this but google was born in your garage. Yes. Rose showed up and said i want to rent your garage. I was looking for someone to help me pay the mortgage and they were looking for a place to rent. It turned out to be a pretty good match. They moved in. It just looking for them to cover the market like i was looking for a hot start up or new Search Engine or anything. Rose or change your career. No. I was looking for them just to pay the rent. Yes, they successfully paid the rent. D i decided to join. Omethingwt rose everybody asks you this and i ask it of people all the type. Whats the next big then. Whats the new frontier, is it Virtual Reality, is it Machine Learning, is it Artificial Intelligence or is it all of those or Something Else . I think those are all really Big Questions and certainly all of them that you mentioned whether its vr or ai, Artificial Intelligence and Machine Learning, i mean all of them can play a really big part in our future. I think if we were to look today and we say well what is actually playing a big role in our life today. We see Something Like Machine Learning. Machine learning is a way for us so we have 400 hours up loaded to youtube every minute. We need to match that to the end users they have coming to our site. How do we do that. We need to learn. We need to have systems to figure out what are the best recommendations, how do we figure out what youre interested in. Rose have you figured it out. Well, the machines will teach the machines something. So well give them like an initial set of information for them to be able to learn something and then from there they can figure that out and they can make recommendations. Because otherwise its not scalable for us to be able to recommend all these videos right to you or the next person over here and to have that be the right set for them. So Machine Learning ill say right now had been incredibly powerful for us. Someone said to me the other day thats the same thing most talk about these days is Machine Learning. I think were using it today, its very useful and powerful today. I think vr is an example of a technology that we think can be really powerful in the future but i wont say, i say its still very early for vr. And so how can you have an experience of video where youre watching and youre fully immersive in that video experience. And so thats like a new art, thats a new experience. But its hard to do. Theres content, how do you figure out to build content for the platform when theres not that many platforms out there yet. So the, weve actually tried to make this really accessible. We came up with something called cardboard which is this made out of cardboard and its a way of ticking your known and putting it into a cardboard and have a vr experience. We focus on making this a really low cost easy experience for people all over to be able to experience that. Rose finding youtube stuff. Somebody who has been on, creates youtube videos and has a large number of followers. Either their videos have a large number of views or they have a large number of subscribers. Ten million subscribers for example. That would be a very successful youtube star. If you talk to teens today, variety did a study where they went out and pulled teens and said who are the biggest celebrities. Eight of the top ten were youtubers in 2015 when they did this study. So these are real stars so we looked at this and we said like these are real stars, how can we help these youtubers take it to the next level. So we have been creating original programming. Weve been focused mostly on with our youtube team, youtube creators and working with some traditional talent. For example doing a new medium. So they traditionally do blogging, maybe theyll do a movie with us, maybe theyll do a series, with other youtube stars, with some traditional media so we have cited over 30 original content pieces so far. And thats bart of our subscription service, and we are seeing that, you know, were seeing some really good traction. Rose no one has been a stronger pro proponent and more active than the issue of gender conversation in Silicon Valley than you. Tell me how its changing. Well i think its a really important issue to address and maybe i can just spend one minute saying why and i hope it changes. I see that the change that were going through right now from a digital perspective is similar to a change that we went through with the printing press. Suddenly theres an incredibly just unavailable beforehand to users and its just using thats a massively different and new way. Im concerned that the number of women who are getting degrees in Computer Science is only 20 . And if you look across the companies, there may be 30 or like a third of many Silicon Valley. I think theres a misunderstanding young women about what urate science is. They think of it a more geeky and less attractive field to go into when in truth its incredibly exciting so thats a challenge when you look at it from a societal standpoint. I think its really important to be able to encourage women to be part of this big change. Rose is Silicon Valley waking up to this. Theres a lot more discussion in Silicon Valley. People have always known the diversity numbers are not as strong as we would like them to be. I think theres been increased awareness of how can we do more to support women in the tech field. Rose and avoid issues. And avoid some issues weve had. I think its really important. I put out a piece on vanity fair. I recommended three things. So first i think it needs to come from the top. I think it needs to be the leader of the company the tech company that said we want to make this a diverse environment were excited and were going to work on it as a management team. You need to give the team right resources but you need current diverse teams to be successful. The worst thing is we have some diversity in the company but theyre not happy. How can you make sure you understand what their issues are, how can you help them be successful and dont ask them, dont ask like the one woman in the group to say we want you to organize a womens event thats not really fair to her. And then lastly, i think everyone can be a mentor and an advocate in some way. Wife been really fortunate ive had some really amazing mentors a the google behind the scenes have helped me in a number of ways. When i needed help or was concern board of director something or want someone to guide me or get me invited somewhere i know they reach ouot for me and i have them to thank. And actually always tell women like your mentors actually have to be men because the leaders in Silicon Valley are mostly men. And so they need to reach out and they need to find the next generation and support them and grow them. Rose at apple they have a meeting every monday morning of every week and they allowed me to come in and see the beginning which tim directs and all the key people there, i forget how many are there. Ive heard there are similar meetings that larry page conducts on friday. True. We have a meeting on friday, well it used to be on friday. Rose what day is it on now. Its on thursday. Its called or was called tgif. It was a company meeting. It was an opportunity for anyone to be able to ask. There are key updates of things that happen and we have different teams to present but also its an opportunity for anyone in the company to ask a question. So we have that as a tradition. I do something similar at youtube. I actually do my own fridays because google moves their to thursday so that freed up fridays so i actually do my own fridays. I think its really powerful. Ill say at youtube and google when i go and i see these different teams present sometimes you see an update on an existing product and thats cool but sometimes you see something and you say this is the future. Im seeing it for the first time and the world is changing. Rose give me an example. Let me go back in history and give an example. Ill just say like the first time i saw maps. And the idea that you could actually have an image of every single place in the world. And it was stunning, it was stunning. You know. In todays world like kids dont know what the paper maps are. Of course not, right, because they all have like the dingell maps. The first time you see that, thats breathtaking. So i think google has a device, google home. And the first time you see it on stage and you see wow, this is like almost like the star trek computer, right. Like you can ask it a question and it can give you an answer to anything. You can ask it to play music. And it can give the weather, it can give you sports scores, it can give you a calendar. Its amazing. And you just think wow this is the beginning, what is it going to look like in five or ten years or next year is going to be a lot better than it currently is. But these are all really exciting moments when you see those events and you start thinking. Oh well today, you know, we got one at school that will get cheaper and cheaper and maybe you can have one in every room and maybe you can have these like very smart but amazing speakers and people like little, you know, little google home devices that can help you. Rose in a sense of our success as a nation has in part been beyond our values and our constitution and the foundation of this country has been our lead in technology. One of the questions you have to ask yourself how do we maintain that lead. I definitely agree our lead has come. I think the technology has been a big factor in that and that in order to maintain that, you know, there are many things we need to do so like you know one thing we could do as a nation is add more Computer Science training in our schools. We all take biology, we all take chemistry but well not become doctors or chemists or farm sists. If you think about the next generation, how are they presented. If theyre not afraid of technology expem Brace Technology and learn technology. You dont need to learn everything, you just need to learn enough that you are willing to learn more. I wish so much that we would be able to offer Computer Science in all the schools. That would handle the gender imis balances and differences with minor fee and it would solve so many issues. The next generation growing up with strong Computer Science skills that will be incredibly incredibly powerful. And you know, im very optimistic about the future. Im optistic about all the opportunities that its going to provide. All the way that we as humans will be smarter and better because of technology that will enable us to do our jobs better to make better decisions to enrich our lives in number of ways. Im excite. Rose pleasure to have you. Thank you for having me so much. Rose reid hoffman is here. Hes one of Silicon Valleys most respected and savviest investors. In 2002 he cofounded linkedin the social networking site for careerminded professionals. In june microsoft announced plans to acquire linkedin for more than 26 billion. The deal is expected to close later this year. Hoffmans apartment greylock the Venture Capital firm has backed some of techs biggest successes over the last decade including bets on facebook, drop box and airbnb. Let me turn to your company linkedin. You sold it to microsoft or you planned a deal to sell it to microsoft for 26 billion i think is the figure. How long ago did you form this company. So almost 15 years. You know late 2002 is when we start working on it. Its been a labor of love. Like all labor of love. Rose at what place was facebook at that time. Facebook in 2002 hadnt been started yet. Rose had not been founded. Had not been founded yet. Rose he was not at harvard he either just got to harvard or just getting to harvard. Rose you started linkedin before facebook was a reality. Yes. Back at that time it was friendster which people probably dont remember. Rose oh, right. You decided what online needed was a place a lot of people of a similar sort of interest in terms of their professional lives could communicate with each other. Yes. So the thought was is that part of what the internet changes we all have our identities online and having your professional identity online can make a difference for what kind of jobs find, what kind of economic and learning opportunities. The best way to improve a system is enable people to help each other. Im connected to you and hey do you know this thing and that could be a great economic opportunity. That was the basic idea behind it. Rose how many people use it now . Over 430 million. Rose 430 million. Yes. Rose facebook has 1. 3 million or Something Like that. Yes. It may even be bigger than that. Rose where can it go. What is the possibility of linkedin. So we hope to enable every professional. What we mean by professional is someone who will learn better skills at their jobs. Its not like lawyers and donchtz its everyone. It could be a coffee store manager or anybody able to change their economic trajectory, to be able to make a better of themselves in terms of what kinds of economics to make, what kind of job. Rose connecting with other people who may have ideas or connections. Ideas, information, connections for business, learning opportunities. Anything that allows you to invest in yourself and have a better economic outcome. Rose so why did you sell it . Well, both jeff and i, ceo, we both lead the same way in service commission. How do we enable our members to have the best possible, you know, experience of investing in themselves. It was a long very thought out decision and we said well actually in fact combining with microsoft, microsofts primary mission is making orgs productive. Our mix is making individuals production. Microsoft cares about individuals and we think about organizations and individuals. One plus one here can be much greater than two. Is it five, is it ten. And that way we can add in our mixes which are the missions are essentially friends. The missions are collaborators. And this can actually help us reach our mission. There are a ton of people who use microsoft products every day. Maybe we can be underlie office or windows. There are things we can do to make it much or help f. Rose when you look around at the big 5 they seem like the best. Yes. In order to get to for our mission help individuals with their best possible economic opportunity, help them be more productive. Those are the things we care about at linkedin. Were perfectly happy with people being entertained or perfectly happy with people kind of having a Public Discourse on funny cat pictures or anything else thats great. That should be part of people lives its awesome. Thats not what we do. We help you to get to the best possible ways of doing your job or the best possible out comes. Rose has there been an acceleration of growth the last several years or has it been study. Been a light acceleration but a light acceleration of big numbers. But you know, it took us 468 days to get to our first million members and now were over 430. Rose talk about Virtual Reality. So there have been many cycles where people describe Virtual Reality as the next big thing. Were another one of them and each time Virtual Reality is better and if people havent checked out Virtual Reality, they should. Its now beginning to the point where the Science Fiction of well maybe well take our classes for our kids. Maybe that will be in Virtual Reality. Maybe all discussions and conference maybe the charlie rose show will be in Virtual Reality. There are a lot of process specifics. I think before we really see those kind of Science Fiction features well begin to see more mass market adoption of a movie thing or entertainment thing. The technology is definitely good enough for it. Are we there yet . Rose film the movie inform Virtual Reality. To show up to make the movie. Rose im sure you would demonstrate on this program and people know about it but if you are watch ag movie thats been made with Virtual Reality it would be like youre on the set. You would be a character in the movie. That would be the way you experience that and i think we are certainly going to see it and the only question is when. Is it three years five years seven years, is it ten years. Rose Artificial Intelligence. Yes. Rose enormously interested in. Give us the lay of the land. Give us a sense of why everybody whether its facebook or whether its google or whether its anybody. Most of the techniques that are being used for these amazing results whether its becoming the World Champion which was alphago which is deep mind in google and these Great Results in radiology and being able to read cancer charts better than the vast majority of doctors. Whether its the ability to do self driving cars. All these things the techniques are actually they evolved some but there actually hasnt been a Game Changing new algorithm. What is in fact then the cloud and a lot of cpus and a lot of data and technologies and use them over a big scale. Thats essentially the new current ai revolution. The way to think about it is decisions human beings can do in a second can now be through large data sets trained through this kind of massive server farms on the cloud can now be done by computers. So it can be classification of images, parsing of language and driving, you decide to go left or right stop brake and those are arm decisions under a second. All of that classification comes to essentially these deep learning networks which allow the program through integration of multiple human life times of data because thats part of how the computer does it is it inyes, sir so ingests data d can go from everything from self driving to medical to parsing language to i mean literally the skys the limit. Rose what it can do is figure out algorithms it has and development of the app, it can figure out how to analyze all this information. Basically what happens is they are classified. Is this an a or b or should i go left or right. Its kind of making kind of the classification decision. And there is what is known as supervised learning and unsupervised learning, right for teaching these. Supervisor is a human goes in and says okay here are the cases where you should decide this is an a and this is when you decide it is not an a. Unsupervised gives it this very broad kind of like for example simple example is you say a robot. I want you to move from this side of the warehouse to that side of the warehouse and im not going to teach you how to move, teach you how to walk or roll or how to hop im simply going to give you a score with a gps locator which is the gps locator moving towards the right thing so you move. The robot, most of them learn to walk, some learn to roll, some learn to hop and you keep doing that and thats unsupervised learning where youre not actually teachg it the actual specifics other than giving it a very high score. Rose it teaches itself. Yes. Rose it teaches itself by doing what, by trial and error . So what happens is these ai al greatals are smart snuff that they build self goaling classifiers. When i move think legs this way my score of getting closer to my end goal went better. So thats good so now im teaching myself how to walk. How do i learn to do that better so that now i can walk. Right. Thats the kind of thing thats the magic of what were seek with these algorithms and modern Artificial Intelligence. Rose when you take all these kinds of things and is there anything about this that worries you. Broadly like many of my folks in Silicon Valley im a utopian. I think Technology Leads to progress. There can be a lot of pain sorting it you out. Anything thats going to happen technologically is good is not the case. Thats foolish those. Our notion of privacy changes. If someone described to you facebook before it existed you would have thought thats like an awful invasion of privacy and yet billion of people every day uses this sharing pictures. What i think is key is to surface issues to Pay Attention to them and try to navigate the technology to get most of the benefit. Its like you know, people have always been worried and Industrial Revolution, manufacturing revolution, information relying. They are always worried about the down side and they should be. Its not wrong to be worried about this. But if we look back at our own history we go were a lot better off when we deploy those revolutions and figure out how to make humanity berd and we change things like we do with Industrial Revolution and put in child labor laws. There are things that are really important. Lets make sure, i think we need to solve privacy and we need ofd medical data and that kind of thing. But if we can get all of the immediate call data medical data in some kind of computational way we can identify key diseases earlier, we can note therapeutics. Though things are important and so to broad lay speaking im a utopian but thats not for example lets take one of the classic ones around which is are we going to have great application and the answer is yes. Rose in other words robots are doing jobs that people do today. Exactly. By the way thats already happening with manufacturing. It happens. And the thing we need to do is as a society help the people who are being shifted to find other ways of being good members of society. Its not welfare. My job here matters. I can do something thats fun and we should do that together. Both as entrepreneurs and as government. We should all do that. So the big one will be self driving. R more about this really and early even scoadz visit on pbs. Org and shors. Com. Charlierose. Com. Captioning sponsored by Rose Communications captioned by Media Access Group at wgbh access. Wgbh. Org rose funding for charlie rose has been provided by and by bloomberg, a provider of multimedia news and Information Services worldwide. Youre watchin man its like holy mother of comfort food. Ion. Kastner throw it down. Its noodle crack. Patel you have to be ready for the heart attack on a platter. Crowell okay, im the bacon guy, right . Man oh, i just did a jig every time i dipped into it. Man 2 it just completely blew my mind. Woman it felt like i had a mouthful of raw vegetables and dry dough. Sbrocco oh, please. I want the Dessert First [ laughs ] i told him he had to wait